Elevate Uranium (ASX: EL8) has received binding commitments for a $25 million two-tranche placement to accelerate the next phase of development at the Koppies uranium project in Namibia.

Tranche 1 will see the company issue approximately 32.4 million shares priced at $0.325 each, while Tranche 2 will issue a further 44.5 million shares at the same price.

The placement received strong support from domestic and offshore institutional investors – including specialist uranium and natural resources funds – and introduced a number of new investors to Elevate’s share register.

Strong demand

Mr Hill said the placement had been well received by investors.

“Demand for this raising was strong and it was great to see such a tangible endorsement of our strategy, which will allow us to aggressively advance our flagship Koppies project,” he said.

“The placement strengthens our financial position and adds further depth to our register by attracting significant institutional support.”

Australian fund manager Paradice Investment Management has committed to $12.4m in shares for a 9.9% pro forma equity in Elevate.

Elevate managing director Murray Hill and non-executive chair Andrew Bantock have committed to 246,155 new shares, subject to shareholder approval.

Demonstration plant

Proceeds from the raising will be used to complete bench-scale metallurgical test work on Koppies ore to inform the design and construction of demonstration plant to validate the capital and operating costs of Elevate’s proprietary U-pgrade disruptive beneficiation process on a continuous basis and at scale.

Funds will also be used to complete a scoping (or higher-level) study for the project and facilitate approximately 100,000 metres of resource and exploration drilling across Elevate’s Namibian and Australian portfolio.

“Our priority is the development of Koppies, with a key milestone being the construction and operation of a U-pgrade demonstration plant to validate the capital and operating costs of the process continuously and at scale,” Mr Hill said.

“We are very confident in the value that U-pgrade can deliver to this project and we look forward to presenting the benefits to our shareholders through further development and technical studies.”